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HomeMy WebLinkAboutExel Financial Goals 2013Truckee Donner Public Utility District Code Title 3.01. 001 Financial Goals Achieved Planning Goals 1) Review Water and Electric Master Plans at least every five years a) A new Electric Master Plan was adopted by the Board in FY09 Yes b) An updated Water Master Plan was adopted in FY12 Yes 2) Review ten-year Finance Master Plan each year The Finance Master Plan will be reviewed this vear as part of the FY14 - FY15 Budaet process Yes 3) Prepare two-year operating budget with semi-annual reviews The District's two-year operating budget for FY12 and FY13 was adopted on November 16, 2011 and reviewed on July 18. 2012: February 20. 2013 and July 17. 2013 Yes 4) Prepare ten-year Capital Improvement Plan; update annually The upcoming capital projects will be updated this year as part of the FY14 - FY15 Budget process Yes 5) Review rate structure and levels every two years The rate structure and levels will reviewed as part of the FY14 - FY15 Budget process Yes 6) Review Financial Goals every year The Financial Goals were last reviewed on August 1, 2012 Yes Revenue Goals 1) Set operating revenues to capture entire cost to provide service plus build and maintain reserves and satisfy debt coverage ratios Yes 2) Review connection charges every two years and set them to recover all costs The Electric and Water connection fees are reviewed during the budget cycle; the last Electric increase was adopted on February 6, 2008; and Water increase was adopted on October 3, 2012 Yes 3) Review facilities fees every budget cycle and after the completion of a master plan The last Electric facilities fees increase was adopted on February 6, 2008; no changes to facilities fees have been recommended The last Water facilities fees increase was adopted on October 3, 2012 Yes Yes D sv 0 zT 3 CD Page 1 of 3 Truckee Donner Public Utility District Code Title 3.01. 001 Financial Goals Achieved Debt Goals 1) Debt that is serving development (facilities fees), current customers (rates), special assessment districts (assessments), and financed by billina surcharaes should be separately identified in the budaet Yes 2) One-half the debt service for all long-term debt in the aggregate is due in the first ten years Total Electric Pension Obligation Bonds (P & 1) Electric Debt Due in First Ten Years Percent of Debt due in the next 10 years $ 10,000,000 $ 10,000,000 100% Yes Total Water Debt $ 49,000,000 Water Debt Due in First Ten Years $ 30,000,000 Percent of Debt due in the next 10 years 61 % Yes 3) No more than one half the projected annual facilities fee revenue committed to debt service FY13 projected Electric facilities fees revenue $ 105,000 FY13 Electric debt payments from facilities fee $ - % of annual FF revenue committed to debt 0% Yes FY12 projected Water facilities fees revenue $ 295,000 FY12 Water debt payments from facilities fees $ 500,000 % of annual FF revenue committed to debt 169% No 4) No more than twenty-five percent of general fund revenues committed to debt service Electric budgeted general funds revenue $ 23,000,000 D Debt service (P & 1) for pension obligation bonds $ 900,000 3 % of General Fund revenue committed to debt 4% Yes CD Water budgeted general funds revenue $ 11,000,000 Debt service (P & 1) paid by General Fund $ 1,745,000 % of General Fund revenue committed to debt 16% Yes 5) No debt more than 25 year maturity Yes 6) No debt longer than useful life of the project Yes Page 2 of 3 Truckee Donner Public Utility District Code Title 3.01. 001 Financial Goals Achieved Cash Reserve Goals - Operations 1) Water general fund should have a reserve equal twice the highest month budgeted expenditure Water general fund reserve goal (twice the highest month budgeted expenditure) $ 3,000,000 Total general fund & operating reserve fund balance $ 4,600,000 Yes 2) Electric general fund should have a cash reserve equal to one half of the annual budgeted operating expenses, excluding depreciation twice the highest month budgeted expenditure Electric general fund reserve goal (twice the highest month budgeted expenditure) Total general fund & operating reserve fund balance The goal is projected to be achieved in 2015 3) Electric rate stabilization fund should maintain a balance of $3,000,000 The June 30, 2013 balance in the rate stabilization fund was $2,892,000 The goal is projected to be achieved in 2014 Capital Reserve Goals $ 10,000,000 $ 5,900,000 No No 1) There should be a revolving Water capital reserve fund in the amount of $4,000,000 to permit projects to be initiated and funded prior to arrangement of long-term debt or other financing No The Water Capital Replacement Fund balance is $3,000,000; goal is projected to be achieved by 2014 2) There should be an Electric capital reserve fund in the amount of $1,000,000. Debt Reserve Goals 11 There should be a reserve fund for each debt instrument in an amount reauired by each lender Yes Yes 2) A reserve fund should be established and maintained to pay for vehicle and equipment purchases as needed. Long term financing should be used when necessary and the life of the asset purchased is greater than 15 years Yes D v 3 CD Page 3 of 3